62. External factors in a firm’s strategic environment which have a potential negative impact are called ____.
a.
hindrances
b.
weaknesses
c.
alarms
d.
threats
Easy
p. 405
MGMT.LUSS.16.11-04 – LO: 11–04
United States – BUSPROG: Analytic
United States – IL – DISC: Strategy – Strategic management builds competitive advantage
AACSB: Analytic – Analytic skills
Conceptual
BLOOMS: Knowledge
63. A _______ is an enduring statement of purpose that distinguishes one organization from other similar enterprises.
a.
values statement
b.
mission statement
c.
code of ethics
d.
strategic vision
Easy
p. 403
MGMT.LUSS.16.11-02 – LO: 11–02
United States – BUSPROG: Analytic
United States – IL – DISC: Strategy – Strategic management builds competitive advantage
AACSB: Analytic – Analytic skills
Conceptual
BLOOMS: Knowledge
64. A ________ is an ambitious view of the future that everyone in the organization can believe in and that is not readily
attainable, yet offers a future that is better in important ways than what now exists.
a.
strategic vision
b.
mission statement
Easy
p. 406
MGMT.LUSS.16.11-04 – LO: 11–04
United States – BUSPROG: Analytic
United States – IL – DISC: Strategy – Strategic management builds competitive advantage
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c.
values statement
d.
core competence
65. An organization’s core purpose and reason for existence is contained in its:
a.
strategic vision.
b.
mission statement.
c.
strategy.
d.
core competence.
Moderate
p. 403
MGMT.LUSS.16.11-02 – LO: 11–02
United States – BUSPROG: Analytic
United States – IL – DISC: Strategy – Strategic management builds competitive advantage
AACSB: Analytic – Analytic skills
Conceptual
BLOOMS: Knowledge
66. A values statement is also knows as core values, while a mission statement is the organization’s:
a.
core responsibility.
b.
core purpose.
c.
core code of ethics.
d.
core competency.
Moderate
p. 403
MGMT.LUSS.16.11-02 – LO: 11–02
United States – BUSPROG: Analytic
United States – IL – DISC: Strategy – Strategic management builds competitive advantage
AACSB: Analytic – Analytic skills
Conceptual
BLOOMS: Knowledge
67. Goal-setting theory asserts that people with ____ goals perform better than those with ____ goals.
a
Moderate
p. 402
MGMT.LUSS.16.11-02 – LO: 11–02
United States – BUSPROG: Analytic
United States – IL – DISC: Strategy – Strategic management builds competitive advantage
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a.
b.
c.
d.
68. According to goal-setting theory, good goals must be all of the following EXCEPT:
a.
measurable.
b.
achievable.
c.
relevant.
d.
standard.
Moderate
p. 405
MGMT.LUSS.16.11-03 – LO: 11–03
United States – BUSPROG: Analytic
United States – IL – DISC: Strategy – Strategic management builds competitive advantage
AACSB: Analytic – Analytic skills
Conceptual
BLOOMS: Knowledge
69. A _______ is an organization’s chosen plan of action for outperforming its competitors and achieving superior
outcomes.
a.
strategic vision
b.
mission statement
c.
strategy
d.
core competence
c
Moderate
p. 405
MGMT.LUSS.16.11-04 – LO: 11–04
United States – BUSPROG: Analytic
United States – IL – DISC: Strategy – Strategic management builds competitive advantage
AACSB: Analytic – Analytic skills
Conceptual
Moderate
p. 405
MGMT.LUSS.16.11-03 – LO: 11–03
United States – BUSPROG: Analytic
United States – IL – DISC: Strategy – Strategic management builds competitive advantage
AACSB: Analytic – Analytic skills
Conceptual
BLOOMS: Knowledge
70. Which of the following is not one of the three generic core strategies leaders can select from?
a.
Differentiation strategy.
b.
Low-cost strategy.
c.
Value-based strategy.
d.
Average-cost strategy.
Easy
p. 406
MGMT.LUSS.16.11-04 – LO: 11–04
United States – BUSPROG: Analytic
United States – IL – DISC: Strategy – Strategic management builds competitive advantage
AACSB: Analytic – Analytic skills
Conceptual
BLOOMS: Knowledge
71. _______ is the perceived benefits received to the perceived price paid by the customer.
a.
Product value
b.
Customer value
c.
Benefit value
d.
Perceived value
Easy
p. 407
MGMT.LUSS.16.11-04 – LO: 11–04
United States – BUSPROG: Analytic
United States – IL – DISC: Strategy – Strategic management builds competitive advantage
AACSB: Analytic – Analytic skills
Conceptual
BLOOMS: Knowledge
72. ____ is a capability that allows an organization to perform extremely well in comparison to competitors and is the
basis of competitive advantage.
a.
A core competence
b.
Synergistic opportunity
c.
Value
d.
Comparative advantage
a
Easy
p. 409
MGMT.LUSS.16.11-04 – LO: 11–04
United States – BUSPROG: Analytic
BLOOMS: Knowledge
73. Core competencies that have the best chance of sustaining the company’s competitive advantage have certain
characteristics. Which of the following is not one of those characteristics?
a.
Unique or distinctive.
b.
Difficult to copy.
c.
Adequately funded and supported by top management.
d.
Not easily substitutable.
c
Moderate
p. 409
MGMT.LUSS.16.11-04 – LO: 11–04
United States – BUSPROG: Analytic
United States – IL – DISC: Strategy – Strategic management builds competitive advantage
AACSB: Analytic – Analytic skills
Conceptual
BLOOMS: Knowledge
74. ____________ is the members’ consensual understanding of “who we are as an organization” that emerges from that
which is central, distinctive, and enduring to the organization as a whole.
a.
Organizational culture
b.
Strategic vision
c.
Organizational identity
d.
Core competence
c
Moderate
p. 409
MGMT.LUSS.16.11-04 – LO: 11–04
United States – BUSPROG: Analytic
United States – IL – DISC: Strategy – Strategic management builds competitive advantage
AACSB: Analytic – Analytic skills
Conceptual
BLOOMS: Knowledge
75. Strategy ____ has been described as the most important and most difficult part of the strategic management process.
a.
formulation
b.
execuation
c.
evaluation
d.
analysis
United States – IL – DISC: Strategy – Strategic management builds competitive advantage
AACSB: Analytic – Analytic skills
Conceptual
BLOOMS: Knowledge
76. A strategy-structure fit is imperative for successful strategy execution but other strategic “fits” can also enhance firm
performance. Which of the following is NOT listed by the text as one such “fit”?
a.
Strategy-culture fit.
b.
Strategy-capability fit.
c.
Strategy-competitor fit.
d.
Strategy-leadership fit.
p. 410
United States – BUSPROG: Analytic
United States – IL – DISC: Strategy – Strategic management builds competitive advantage
AACSB: Analytic – Analytic skills
BLOOMS: Knowledge
77. Which of the following statements concerning strategy and execution are true?
a.
An excellent strategy that is poorly executed yields the same poor results as a bad strategy.
b.
Strategy implementation takes place through a special organization unit.
c.
Top leaders are the ones who actually turn the strategic plans into actions.
d.
There are a number of factors that must be present for strategy execution to progress successfully, one of
which is having the right front-line leadership.
p. 408
United States – BUSPROG: Analytic
United States – IL – DISC: Strategy – Strategic management builds competitive advantage
AACSB: Analytic – Analytic skills
BLOOMS: Knowledge
78. Strategy evaluation involves all of the following EXCEPT:
a.
reviewing internal and external factors that are the bases for the current strategy.
b.
measuring performance against stated objectives.
p. 408
United States – BUSPROG: Analytic
United States – IL – DISC: Strategy – Strategic management builds competitive advantage
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c.
taking corrective action.
d.
rewriting objectives if necessary.
79. ________ change is an alteration of not only structures, systems, and processes but also a cognitive leadership
reorientation.
a.
Incremental
b.
Organizational
c.
Functional
d.
Environmental
Easy
p. 411
MGMT.LUSS.16.11-05 – LO: 11–05
United States – BUSPROG: Analytic
United States – IL – DISC: Strategy – Strategic management builds competitive advantage
AACSB: Analytic – Analytic skills
Conceptual
BLOOMS: Knowledge
80. ____ anxiety is the feeling that unless an organization makes a change, it is going to be out of business or fail to
achieve some important goals.
a.
Learning
b.
Organizational
c.
Survival
d.
Functional
c
Easy
p. 412
MGMT.LUSS.16.11-05 – LO: 11–05
United States – BUSPROG: Analytic
AACSB: Analytic – Analytic skills
Conceptual
BLOOMS: Knowledge
Moderate
p. 411
MGMT.LUSS.16.11-05 – LO: 11–05
United States – BUSPROG: Analytic
United States – IL – DISC: Strategy – Strategic management builds competitive advantage
AACSB: Analytic – Analytic skills
Conceptual
BLOOMS: Knowledge
81. All of the following are strategies that leaders can use to effectively manage change EXCEPT:
a.
keep the process transparent.
b.
form a coalition of supporters and experts to counter any opposition.
c.
stay the course in spite of perceived difficulties.
d.
take a ‘hands-off’ approach, at this stage employees know what is expected.
82. A tool used to measure the effectiveness of executed strategies is the _________ which evaluates the company’s
financial and strategic objectives.
a.
strategic management process
b.
change management process
c.
balance scorecard
d.
SWOT analysis
p. 411
United States – BUSPROG: Analytic
United States – IL – DISC: Strategy – Strategic management builds competitive advantage
AACSB: Analytic – Analytic skills
BLOOMS: Knowledge
83. All of the following are events that may trigger the need for change EXCEPT:
a.
new technologies.
b.
new regulations.
c.
major changes in consumer buying behavior.
d.
new menu in company cafeteria.
p. 412
United States – BUSPROG: Analytic
United States – IL – DISC: Strategy – Strategic management builds competitive advantage
p. 413
United States – BUSPROG: Analytic
United States – IL – DISC: Strategy – Strategic management builds competitive advantage
AACSB: Analytic – Analytic skills
BLOOMS: Knowledge
84. Accurate and timely interpretation of environmental trends plays a large part in the continuing effectiveness of an
organization’s strategy. Some strategic leaders believe it is better to be a pioneer and makes mistakes occasionally than to
be _________.
a.
an innovator
b.
a follower
c.
a competitor
d.
an evolver
Moderate
p. 406
MGMT.LUSS.16.11-04 – LO: 11–04
United States – BUSPROG: Analytic
United States – IL – DISC: Strategy – Strategic management builds competitive advantage
AACSB: Analytic – Analytic skills
Conceptual
BLOOMS: Knowledge
85. When selecting a core strategy, one decision is to decide whether to adopt a defender, prospector, analyzer, or reactor
posture. A characteristic of defenders is:
a.
they carefully deliberate.
b.
they seldom search for new opportunities.
c.
they continuously search for new opportunities.
d.
they delay action until convinced it works for others.
Moderate
p. 407
MGMT.LUSS.16.11-04 – LO: 11–04
United States – BUSPROG: Analytic
United States – IL – DISC: Strategy – Strategic management builds competitive advantage
AACSB: Analytic – Analytic skills
Conceptual
BLOOMS: Knowledge
86. The second step of the force-field model is about the execution of the change. The key is developing new
____________ that are aligned with the proposed change.
a.
policies and procedures
b.
attitudes, values, and behaviors
c.
employees
d.
marketing schemes
AACSB: Analytic – Analytic skills
Conceptual
BLOOMS: Knowledge
87. Which of the following is NOT one of the stages in Lewin’s classic theory of planned change?
a.
Evaluating the new state.
b.
Unfreezing an existing state.
c.
Moving to a desirable state.
d.
Refreezing a new state.
a
Easy
p. 413
MGMT.LUSS.16.11-06 – LO: 11–06
United States – BUSPROG: Analytic
United States – IL – DISC: Strategy – Strategic management builds competitive advantage
AACSB: Analytic – Analytic skills
Conceptual
BLOOMS: Knowledge
88. For any change to become permanent and accepted into the everyday practices of an organization, the leader must
follow through to the final stage of __________ the new change.
a.
implementing
b.
unfreezing
c.
refreezing
d.
transforming
c
Moderate
p. 414
MGMT.LUSS.16.11-06 – LO: 11–06
United States – BUSPROG: Analytic
United States – IL – DISC: Strategy – Strategic management builds competitive advantage
AACSB: Analytic – Analytic skills
Conceptual
BLOOMS: Knowledge
89. An attempt to start the changing phase without first __________ old attitudes and behaviors is likely to meet with
strong resistance.
a.
unfreezing
Moderate
p. 413
MGMT.LUSS.16.11-06 – LO: 11–06
United States – BUSPROG: Analytic
United States – IL – DISC: Strategy – Strategic management builds competitive advantage
AACSB: Analytic – Analytic skills
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BLOOMS: Knowledge
b.
refreezing
c.
acknowledging
d.
identifying
90. ____________ can only occur when the desired changes in behavior become habitual.
a.
Unfreezing
b.
Complete transformation
c.
Core competence
d.
Organizational identity
Moderate
p. 414
MGMT.LUSS.16.11-06 – LO: 11–06
United States – BUSPROG: Analytic
United States – IL – DISC: Strategy – Strategic management builds competitive advantage
AACSB: Analytic – Analytic skills
Conceptual
BLOOMS: Knowledge
91. Although indispensable for long-term economic growth, organizational changes are frequently met with
____________.
a.
resistance
b.
resignment
c.
acceptance
d.
inertia
a
Moderate
p. 414
MGMT.LUSS.16.11-07 – LO: 11–07
United States – BUSPROG: Analytic
United States – IL – DISC: Strategy – Strategic management builds competitive advantage
AACSB: Analytic – Analytic skills
Conceptual
BLOOMS: Knowledge
a
Moderate
p. 414
MGMT.LUSS.16.11-06 – LO: 11–06
United States – BUSPROG: Analytic
United States – IL – DISC: Strategy – Strategic management builds competitive advantage
AACSB: Analytic – Analytic skills
Conceptual
BLOOMS: Knowledge
92. _______ is a valuable currency for leaders to have, because it is the foundation upon which the benefits of a proposed
change can be sold to employees who may suffer personal losses from such action.
a.
Values
b.
Trust
c.
Leadership
d.
Confidence
93. All of the following are major reasons why people resist change EXCEPT:
a.
distrust of leadership.
b.
lack of conviction that change is necessary.
c.
threat to existing cultural values.
d.
threat to personal safety.
Moderate
p. 414, Exhibit 11.2
MGMT.LUSS.16.11-07 – LO: 11–07
United States – BUSPROG: Analytic
United States – IL – DISC: Strategy – Strategic management builds competitive advantage
AACSB: Analytic – Analytic skills
Conceptual
BLOOMS: Knowledge
94. Leaders who regard ________ as a distraction rather than a real and legitimate concern will find it hard to move
beyond the first step of the change management model.
a.
resistance
b.
culture
c.
cultural identity
d.
personal values
a
p. 416
MGMT.LUSS.16.11-07 – LO: 11–07
United States – BUSPROG: Analytic
Moderate
p. 415
MGMT.LUSS.16.11-07 – LO: 11–07
United States – BUSPROG: Analytic
United States – IL – DISC: Strategy – Strategic management builds competitive advantage
AACSB: Analytic – Analytic skills
Conceptual
BLOOMS: Knowledge
95. From a humanistic point of view, resistance to change has a cognitive, emotional and behavioral dimension. The fear
of loss, (such as status, pay, job, or position), and fear of the unknown are examples of the ____ dimension.
a.
cognitive
b.
emotional
c.
behavioral
d.
cultural
Moderate
p. 417
MGMT.LUSS.16.11-08 – LO: 11–08
United States – BUSPROG: Analytic
United States – IL – DISC: Strategy – Strategic management builds competitive advantage
AACSB: Analytic – Analytic skills
Conceptual
BLOOMS: Knowledge
96. __________ before, during, and after a change has been implemented will prevent misunderstandings, false rumors,
and conflict.
a.
Evaluation
b.
Effective communication
c.
Planning
d.
SWOT analysis
Moderate
p. 417
MGMT.LUSS.16.11-08 – LO: 11–08
United States – BUSPROG: Analytic
United States – IL – DISC: Strategy – Strategic management builds competitive advantage
AACSB: Analytic – Analytic skills
Conceptual
BLOOMS: Knowledge
97. All of the following are recommendations leaders can employ for minimizing resistance to change, EXCEPT:
a.
show relentless support and unquestionable commitment to the change process.
b.
avoid micromanaging and empower people to implement the change.
c.
coerce holdouts to accept change through rewards and/or punishment.
d.
create and organizational climate that supports change.
c
United States – IL – DISC: Strategy – Strategic management builds competitive advantage
AACSB: Analytic – Analytic skills
Conceptual
BLOOMS: Knowledge
98. To reduce employees’ resistance to change, leaders need to pay attention to five P’s, which include all of the following
EXCEPT:
a.
price.
b.
purpose.
c.
people.
d.
priorities.
a
Moderate
p. 417
MGMT.LUSS.16.11-08 – LO: 11–08
Conceptual
99. Discuss the role of strategic leadership in the strategic management process.
Moderate
p. 397 – 400
MGMT.LUSS.16.11-01 – LO: 11–01
Conceptual
100. Identify the five decision categories in the strategic management process.
Moderate
p. 417, Exhibit 11.3
MGMT.LUSS.16.11-08 – LO: 11–08
Conceptual
101. Explain the relationship between objectives and strategies.
102. Describe the relevance of analyzing an organization’s internal and external environment as part of strategy
formulation.